Key points
- Positive and robust Pre-Feasibility Study (PFS) for Brownsville Lithium Refinery
- Strong economics with a pre-tax NPV8% of approximately US$787 million
- Strategic location in Texas, near growing EV and ESS markets
- Lower operating costs and competitive pricing advantages
- Robust capital cost estimate of US$607 million with a US$130 million contingency
Full summary
Lithium Universe Ltd has released the results of the Pre-Feasibility Study (PFS) for its proposed Brownsville Lithium Carbonate Refinery in Texas, USA. The PFS confirms the project's viability, with a pre-tax Net Present Value (NPV) of approximately US$787 million and an Internal Rate of Return (IRR) of 21.0%. The project is expected to produce up to 18,270 tonnes per annum of battery-grade lithium carbonate, with annual revenue of approximately US$383 million and EBITDA of approximately US$161 million. The refinery benefits from lower operating costs, strategic location near emerging battery and EV manufacturing hubs, and potential access to US federal and state incentives. The project economics are robust, with a gross margin of approximately 42% and operating costs of approximately US$3,566 per tonne of lithium carbonate.
Guidance
Pre-tax NPV of approximately US$787 million, IRR of 21.0%, annual revenue of approximately US$383 million, EBITDA of approximately US$161 million
Outlook
The company expects the project to benefit from strong demand for battery-grade lithium carbonate in North America, supported by growing EV and ESS markets. The strategic location and competitive operating costs position the refinery to capitalize on these trends.